What are the benefits of declaring bankruptcy?
What are the benefits of declaring bankruptcy?
While declaring bankruptcy can be a traumatic, stressful event that could result in feelings of shame and humiliation, it can also be a way for some people to regain control of their debt without having to live with the burden of high credit card bills for years. It's important to understand the benefits and disadvantages of declaring bankruptcy before you make a decision.
Some of the benefits of declaring bankruptcy include:
-A clean financial slate – After declaring bankruptcy, your credit score will bounce back after seven years as long as you've paid your bills on time since your discharge. Prior to that, you'll have an F, or D rating, but nothing too serious. You'll be able to apply for credit so you can buy a house or car or start a business.
-No debt collection agencies calling every day – While filing for bankruptcy does not mean that debt collectors will stop contacting you (they might even become more persistent), it does give you more legal options if they are harassing you. You can request that they stop contacting you altogether or only contact you through mail—and if they break those rules then they risk being fined by the FTC (Federal Trade Commission). Even while you're negotiating with them on these terms, however, it's best to avoid them at all costs.
If you need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
